FrieslandCampina Engro Pakistan Posts Profit of Rs. 938 million in H1 2022

FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for the six months ending June 30, 2022. The company registered a Profit After Tax (PAT) of Rs. 938 million against Rs. 1.41 billion for the same period last year, a decline of 33.6 percent. Despite steep increases in commodity costs due to soaring inflation, and the rapid, unprecedented devaluation of the rupee, gross profit grew by 2 percent even though margins declined. Increased interest rates and imposition of the Super Tax in budget 2022-23 applied further financial pressure. The company reported revenue of Rs. 30.7 billion, a 25 percent increase year-over-year from Rs. 24.59 billion. The growth was led by robust volume growth for both- the Dairy & Beverages and Ice Cream & Frozen Desserts segments, as well as improvement in the portfolio mix. With a growth of 23.4 percent versus last year, the segment reported a revenue of Rs. 26.4 billion. The flagship brand, Olper’s, led the growth in the segment along with strengthening its market leadership position through consistent brand building and trade activities. A significant expansion was witnessed in the retail footprint and E-Commerce channels during the period. The segment will continue to explore new channels and routes to market to serve its customers effectively and efficiently. The company’s other products like Olper’s Flavored Milk, Olper’s full cream milk powder (FCMP), Olper’s Pro-Cal, and Olper’s Cream have also gained a healthy market share in a short span of time despite strong competition from established players. With a growth of 39 percent versus last year, the segment reported a revenue of Rs. 4.4 billion. This growth has been enabled by the segment’s investment in season-opening activities and expansion of the trade universe by inducting more assets into the market. The business environment remains challenging due to rising inflation and currency devaluation. However, with an agile business model in place, the company will continue to drive efficiencies across the value chain and deliver growth.